Suppose as company controller, you need a large influx of cash to develop and ma

Question

Suppose as company controller, you need a large influx of cash to develop and market a new product that will keep the company afloat. You may be able to get a bank loan, but not if you report the current inventory on the now-outmoded product at its true value. If you fudge the numbers and misrepresent the company's financial health, you can get the loan and keep the company going. Here, again, is a situation in which being honest and preserving your integrity (not fudging the numbers) outweighs the positive consequences of benefiting a large number of people (getting the bank loan).identify the decision-making framework you would utilize to confront this dilemma.

Explanation / Answer

Firstly, as company controller, one is accountable with financial numbers towards shareholders of the company. So in such situation "Integrity" should be maintained by the person in charge of it. He should be honest and maintain integrity in such situations as people's money is at stake for the opertion of the company.

Even if by misrepresenting some numbers, company get loan for future perspectives, any loss to company in future may affect badly in form of reputation, financial loss to the shareholder and other kind of loss to the stakeholders.

But maintining the honesty and not getting the loan from bank company can't do prospctive performance but in long run it will benefit in the form of public trust, more business, shareholders sympathy, etc.

So it is advisable that in decision making framework company controller should maintain honesty and Integrity.

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